Withdrawal of Duty Cuts – Consequences

Last month’s notification laid down categories in which current Customs duty exemptions were to continue. Sixty-one bulk drugs and 15 formulations were removed from the list. This included imported and locally manufactured drugs.

All 76 drugs will now be subject to normal rates of basic duty at 7.5% .This would mean MNCs that hold patents for certain life-saving drugs would be at a disadvantage. Local companies will suffer a smaller increase.